Please help answer this question!!!!

[dallas]

Hi and I am new to this forum...I have read other forum's but none seem as nice and helpful as this forum.
My question is concern's on a chapter 13 I spoke with 1 attorney and have a second consult next week. If I have decided to do a 13 instead of a 7 because I own a car worth $8000 and motorcycle worth $10,000 and do not want to chance giving them up and would like to go threw the proper channels to complete a pay back plan. I make around $43,000 live in Florida have 2 dependent's plus myself. My c.c. debt is $40,000 I am current on mortage. When I do a budget plan and figure out my expences I have around $150 left and this is being conservative. My question to you kind folk's is would the trustee even set a pay plan with this small of a amount to payback on a plan? Or are all plan's considered no matter what the amount is that is left as long as some thing is available towards the plan. I do not have any funds to purchase my items other wise I would do a 7 and buy them back. I was current on everything minding my own business and going threw life and then wam my job of 13 years went chapter 11 closed and I was on unemplyment. I pleaded with c.c. to work with me they treated you like dirt... I was current and never late for 10 plus year's and the one time you ask for a lower rate or lower payment they kick you to the curb. Any advice will help thanks again and to all keep up the good work....Your new forum friend.

[rrockinggramma]

welcome to the forum. Your disposable will all depend on your expenses and what is allowed in florida and what isn't. If you have equity in the vehicles that could also be a factor in your payback. Since I am not from Florida, hopefully another Florida person will respond. But welcome and good luck.

[dallas]

Yes vechicles are paid.

[dallas]

The other thing I wanted to mention the first attorney told me that as long as you have funds at the end of the month you are eligable for a 13 he did say you would most likely be put in a 5 year plan. This man was old (god bless him) and Im not sure if he imself will be here in 5 years so I question him.

[aa06a47]

I would think based on income and dependents, you would qualify for a chapter 7. Not sure about Florida exemptions, but even if you go Chapter 13, 3 year should be the max your in a plan.

[Billssuck]

I only have $125/mo payment for 3 years so they do go that low for a payback amount.

[dallas]

I know I can do a chapter 7.... But I want to avoid this if I can or I will lose my 2 item's stated. So I was trying to figure out would I be able to go chapter 13???? Thanks to any feedback.

[AngelinaCatHub]

I know I can do a chapter 7.... But I want to avoid this if I can or I will lose my 2 item's stated. So I was trying to figure out would I be able to go chapter 13???? Thanks to any feedback.

I must admit, I know nothing about 13 but what I too have read here. But your two items mean what to you? If you are allowed, you might "Pay through" but the 7 will give you a new start in life. Things are not important as 'peace of mind'. If you have that, fine, if not, go for a complete new start. You can go after "things" when you can afford them. It is only my opinion. 'Hub

EDIT: if you can pay through on those toys, then you would not lose them. If your lawyer in a 7 says, you would not be able to afford them, believe him. It is true. If it becomes that these items have some big equity in them, then you can purchase them back from the Trustee. He usually is good at devaluing it but you would pay twice for the items. Just an opinion. 'Hub

[justplaintired]

I must admit, I know nothing about 13 but what I too have read here. But your two items mean what to you? If you are allowed, you might "Pay through" but the 7 will give you a new start in life. Things are not important as 'peace of mind'. If you have that, fine, if not, go for a complete new start. You can go after "things" when you can afford them. It is only my opinion. 'Hub

EDIT: if you can pay through on those toys, then you would not lose them. If your lawyer in a 7 says, you would not be able to afford them, believe him. It is true. If it becomes that these items have some big equity in them, then you can purchase them back from the Trustee. He usually is good at devaluing it but you would pay twice for the items. Just an opinion. 'Hub

I have to agree here, sorry. If the whole point of filing is to get a fresh start, then holding on to those 2 things doesn't seem wise. Believe me, we lost things trying to stay afloat over the last 5 yrs. Harley, for one. We will have another one, it just might take time. Be sure keeping those and making those payments is going to be the best thing for you financially. One other thing, are you behind on payments on those things? If not, then if you don't have alot of equity in them then perhaps you should try a ride thru on them. Or perhaps hold off filing til your caught up on the payments? Or can you actually afford them?

[rrockinggramma]

pay through won't work for the OP because of the motorcycle. He has too many vehicles and they are paid off so they have equity.

What will happen is that your payback will have to equal if not exceed a little the equity that you have in the vehicles you want to keep. So you stated 8000 etc so your payback would have to be at least that amount spread out over 36 months or 60 months. Just make sure the vehicles will make it through the plan without much repair.

[pcn]

The way I understand it with equity, you can either pay now (ch7) or pay later (ch13). with 18k equity you must pay at least $300/mo over a 60 month ch13 plan to make the 18k. If you cant protect the assets, is it really worth it to be tied to a plan for 60 months vs getting it over with in the ch7? Is there a way to place a lien on either asset?

[DeadManCrawling]

I am in Florida as well, Middle District.

The state exemptions here are really quite low, with the exception of the unlimited homestead protection. That is great for homeowners with equity to protect, but leaves non-homeowners out to dry, in my opinion.

The vehicle exemption is $1,000 I believe, or perhaps 2k, but either way not enough to preserve the equity you have in all those vehicles. Our total in FL for exemptions adds up to 5-6k, if I recall correctly, aside from the homestead. This is generally enough to exempt household furnishings and a couple other small things for most people.

I concur with others posting here, that you should really reconsider trying to keep them all. Think of ongoing insurance, maintenance, etc, and you are potentially hurting yourself very badly, even though it might feel as though you are winning by keeping them.

Good luck, however you decide to proceed.